Added more at $26.. I averaged up at $37 thinking it would have run to $45 on the ADL deal but it fell on its face and hard to $26.
As a dividend investor it was a no brainer to add more at $26.. approx 6.5% yield.
Not bad, right.
I would like to see a few quarters of all of the companies integrated. I think that is what everyone wants to see plus the production challenges are hopefully resolved. It was nearly been 12 months with these production delays.
The transit industry as a whole is going through some shift. I assume that the margins on the electric are going to be in-line with other types of buses.
I think that if we have a good battery supply from the group out of Michigan then we should be ok. Offering the fully integrated package is certainly the way to go, solution based selling.
We might see a delay in orders until electric ramps but not everyone is going electric right now.
Regarding BYD, they are a strong Asian company that is vertically integrated and could place pressure on everyone. Grey Lines in BC placed a large order for their buses and they got some EV on the road in Long Beach. However, they have challenges with their products (google BYD lawsuite) with various agencies but maybe this has been resolved.
Nova and the other company south of the border are not major threats. Proterra could give NFI a good run for their money. They have the backing of Daimler and a few other heavy wieghts. However, they dont have experience with mass production and are going to hit so many challenges along the way but Proterra will be a real player in the market.
I see Nova and the other US manufactuerer loosing ground while Proterra rises and BYD will need to step up their game. New Flyer needs to be investing heavily into EV technologies and solutions right now. A large portion of this market is going to be EV in American over the next decade.
ADL couls also be interesting to see.. we paid really good money for that group so not sure why the stock has actually dropped off.
There are many moving pieces but I expect to see increases from this point, back to $40 + range. Anything less is a joke and should conside a go private deal.
Proterra who has delivered only a few electric test buses has a market capitalization of nearly $1 Billion. We have a market cap of $1billion.
We could easily be $4-5Billion.